NOVEMBER 13, 2017 – Unity Bank Plc has developed Nigerian Incentive Risk Sharing System for Agricultural Lending (NIRSAL) Farmers Savings Account designed to help the bank execute key agreement for rural farmers.
The NIRSAL is a Central Bank of Nigeria (CBN) initiative to increase the disbursement of the Anchor Borrower funds to more farmers at the grassroots level.
Commenting on the farmer’s product, Head, Agribusiness, Unity Bank Plc, Olugbenga Emmanuel Adelana, said “a total of seven states – Kebbi, Jigawa, Zamfara, Adamawa, Kaduna, Kano and Bauchi and over 9,000 small holder farmers have signed on to the scheme when the pilot of the Channel Partnership Agreement (CPA) first came on stream.
The success and the need to grow the number of farmers benefiting from the scheme in other states of the federation have, therefore, given rise to the development of NIRSAL Farmers Savings Account”.
Also, the creation of several intervention schemes by the CBN will boost economic diversification and reduce over dependency on crude oil. The CBN is thus funding the Anchor Borrowers Scheme in which it has set aside a whooping N500 billion for the creation of rural employment and assurance of food security.
A Memorandum of Understanding (MoU) and Service Level Agreement on the implementation of the channel partnership has been approved and signed by Unity Bank and NIRSAL.
Under the partnership, NIRSAL aims to disburse up to N100 billion out of the N500 billion earmarked by the CBN for the Anchor Borrower Scheme, using Unity Bank as “channel partner”.
The scheme will leverage Unity Bank’s extensive rural branch network, e-channels and technology to reach several thousands of un-banked smallholder farmers in rural Nigeria, with access to finance for staple crops and livestock production, under Central Bank of Nigeria funded Anchor Borrowers Scheme.